If Net Neutrality Dies, Expect Common-Carrier Push

By Kelly Teal Comments
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Let’s say network operators, despite predictions to the contrary, do use the recent Supreme Court ruling to fund anti-net neutrality lobbying in the upcoming mid-term elections. And let’s say pro-net neutrality efforts at the FCC and in Congress die. What then for net neutrality advocates? Supporters say, if that were to happen, expect a renewed push for putting Internet access back under common carrier regulations. But people who oppose greater government oversight of the Web say those efforts wouldn’t get very far.

The speculation stems from the Jan. 21 high court decision to allow stronger corporate and labor influences on the elections process. The vote spurred some pundits in the communications industry to wonder how the decision may impact the net neutrality debate. The consensus is there’s likely little direct effect – and yet, given the unpredictable nature of Washington politics, that can change. Plus, if a D.C. court sides with Comcast Corp. over FCC wrist-slapping, federal attempts at net neutrality regulation could lose their footing.

Thus, net neutrality advocates are “war-gaming,” as one analyst put it, should the worst-case scenario arise. And the strategy under discussion would require a reversal of some key FCC votes.

Over the years, the FCC has reclassified cable and DSL Internet access to relieve providers of government scrutiny; operators have argued that regulatory micromanagement stunts their ability to deploy broadband. The FCC agreed and, over the years, has labeled cable and DSL Internet access as an “information service,” as defined by Congress. An information service is relatively unregulated. A “telecommunications service,” on the other hand, is subject to a plethora of common carrier regulations such as Universal Service Fund contributions, intercarrier compensation, wholesale line-sharing and other requirements.

The key problem for net neutrality supporters, then, is the absence of regulatory teeth in the information service classification. So, they’re thinking of ways to press the FCC to reclassify DSL and cable Internet access. And there are no guarantees of success.

“That would be a big fight,” said Jeff Silva, senior policy director of telecommunications at investment bank Medley Global Advisors. Silva was among the first observers to posit that the Supreme Court decision could turn the net neutrality debate on its head.

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